BlueGem Capital Partners, the private equity owner of West End retailer Liberty, has collected €170 million from investors enabling to hit a first close on its latest fund, according to people familiar with the matter.

The firm, which was set up by former executives at investment bank Merrill Lynch in 2006, is aiming for a €400 million fund which would be twice the size of its predecessor, a €200 million vehicle raised in 2007.